Iskandar Malaysia

Iskandar MalaysiaStrong Sustainable Metropolis of International StandingStrong Sustainable Metropolis of International Standing

Presentation by:

MOHAMMED ASHRIL

Vice President, Investor Relations

Iskandar Regional Development Authority

3rd December 2009

ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)

1. Iskandar Malaysia Overview

Strategic Location

IRDA Roles & Responsibility

Investment Opportunities

Progress Update of Projects

2. What can Iskandar Malaysia offer to Investors?

2

Presentation Outline


Established: 2007Focus areas: Agriculture, Biotech, Tourism

& Logistics

Established: 2008Focus areas: Oil-based, Aluminum, Steel, Glass,

Tourism, Palm Oil, Timber, Livestock, Aquaculture, Marine

Engineering

Established: 2008Focus areas:

Oil & Gas, Tourism Petrochemical, Manufacturing,

Education, Agriculture

The Economic Corridors

3

Established: 2006Focus areas: Iskandar Malaysias 9 Pillars

Established: 2007Focus areas:Agriculture, Manufacturing

& Tourism


Iskandar Malaysia Is Strategically Located

Iskandar Malaysia lies at the heart of South East Asiaat the southern tip of West Malaysia within minutesfrom Singapore

Strategically located at the cross roads of East-Westtrade lanes

Centrally located in the heart of East Asia

Source : The Economist Intelligence Unit

4


Geographical Coverage of Iskandar Malaysia

55

Region Area (km2) Population (million)

Iskandar Malaysia 2,217 1.4 (Projected 2025: 3.0 million)

Singapore 690 4.1

Dubai 3,885 1.2

Hong Kong 1,095 6.9

Area: 2,217 km2 / 550,000 ac.

3 times the size of Singapore

Population: 1.4 million

Five PBTs and 3 districts


The Iskandar Malaysia VisionEconomic Growth

6

To develop Iskandar Malaysia into a strong and sustainable metropolis of international standing

Population 1.4 million 3.0 million

Per capita GDP (RM) 51,765 108,850

GDP (RM) 70 billion 325.5 billion

Employment 0.610 million 1.428 million

Year 2005 Projected (2025)

6


Iskandar Malaysias Development Strategy

7

A Strong Sustainable Metropolis of International Standing

International Rim

Positioning

Economic Drivers

& CatalystProjects

Infra-structureEnablers

Institutional Framework

& Regulatory Authority

Socio Economic

Equity

Equitable & Fair Distribution Among Stakeholders

Growth and Value Creation

Nation Building

Vision

Five Strategic

Pillars

Three Foundations


Facilitating Regulatory Authority (IRDA)

IRDA Act 2007 (Act 664) empowers IRDA to facilitate the promotion, planning, processing and

infrastructure development.

Collaboration with relevant authorities ensuring seamless service delivery to investors (example: one-stop-centre to fast track approval and provide customer service)

Supported by the Prime Minister and Chief Minister of Johore, both Joint Chairmen of the IRDA Members of Authority and esteemed Advisory Council

Integrated planning to ensure world-class benchmarks are adopted in development, for example in transportation, urban design, safety and security etc.

IRDA was established through an Act of Parliament to deliver on the Iskandar Malaysia vision.

IRDA


Strong, Diversified, Dynamic and Global

Electrical & Electronics

Petrochemical

&Oleo

chemical

Strong Supporting Institutions (Education, R&D, Government, Private & social institutions, communication &coordination system)

World-class Professionals and Technical Work Force

The Main Pillars

Logistic & related Services

Tourism

Finan

cialSe

rvices

Excellent Physical, Infrastructures, including IT

Stable Political, Social Environment

Strong Supporting Industries ( Metal Products, Engineering, Non-metallic, Manufacturing Related Services (MRS))

Iskandar Economy

Support System

Basic Foundation

Cre

ativeIn

du

stries

Food & Agro

Processing

Edu

cation

alSe

rvices

The well-established sectors which are manufacturing-based will be reinforced while giving new emphasis on new sectors which are services-based

Iskandar Malaysias Economic Thrusts offers Investment Opportunities

He

althSe

rvices

Four New Service-Based Pillars being addedFive Main Pillars to be reinforced

Excellent Working & Living Environment

9


From the promotional activities including trade missions Iskandar Malaysia hasattracted over 500 site visits from potential investors, domestic and internationally.

Catalyst and new key investors includes Iskandar Investment (IIB), Mubadala, KuwaitFinance House, Millennium, UEM/Limitless Asiatic (Genting), Central MalaysianProperties, JCorp, Malaysia Mining Corporation, Malaysia Pacific Corporation etc.

To date investments are primarily from the private

sector, domestic and internationally; with the

Government contributing to infrastructure enhancements

and social welfare.

Investments in Iskandar Malaysia

10

ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) Source: IRDA, Khazanah, IIB , MIDA &corporate announcements

To ensure committed investments are delivered

Investment Updates : Cumulative Committed Investment

5.511.9

21.7 23.281.0

5.16.44

7.1

8.17

13.07

5.8

5.8

6.8

6.28

11.3

25.8

41.76

49.07

02468

10121416182022242628303234363840424446485052

2006 2007 2008 YTD Sep 09

RM (bln)

Cumulative Committed Investment Year-on-Year

Manufacturing Utilities,Tourism & OthersProperties GovernmentCommitted Investment

Target 2009 RM 44.75 bln

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

2008 YTD Sep 09

22.83 24.76

18.92

24.31

RM Billion

Foreign Local

45%

55%

50%

50%


Investment Updates : Committed vs. Actual Investment

32.2% of the total committed investment have been spent to-date

Sectors

Cumulative

Committed

Investment

as at Dec 08(RM bln)

Cumulative

Committed

Investment

Jan 09 Sep 09(RM bln)

Actual Investment as

at Sep 09(RM bln)

Manufacturing 21.70 1.58 10.81

Utilities 2.90 - 0.47

Tourism 0.75 - 0.04

Property 8.17 4.90 2.35

Government 6.83 -0.56 * 1.63

Others 1.40 1.40 0.48

Subtotal 41.75 7.32 15.78

Total Committed

Investment49.07

* To reflect RMK-9 ceiling reduction of RM557 million


Iskandar Malaysia: Geographical Area

Eastern Gate Development (Pasir Gudang Tanjong Langsat)Nusajaya

Johor BahruCity Centre

Western Gate Development (Port Tanjung Pelepas)

Senai Skudai(Kulaijaya)

Singapore

Flagship

Flagship

Flagship

FlagshipFlagship

Focused Development at Five Flagships

2,217 km2 or 550,000 acres

3 times the size of Singapore

1.4 million population


Gerbang Sultan Iskandar

9 Dec 2008

Johor BahruCity Centre

Project Progress Update Flagship A

14Source: IRDA


Project Progress Update Flagship BKey Projects Location in Nusajaya

15

Kota

Iskandar

Puteri

Harbour

Medini

East

Ledang

Horizon

Hills

Educity

SiLC


Asia Petroleum Hub : KIC - Bunker Terminal in Tanjung Bin GDV: RM1.4 billion Built on manmade island located 700m from PTP

MMC Corp: Maritime Centre at Tg Bin Initial investment of RM2.0-RM2.3bn, Total expected FDI of RM17-20bn Total area of 2,255 acres

PTP expansion (MMC Corp) (RM1.5bn) RM1.5 bn Berth 11, 12, 13 and 14 Capacity to increase by 3.2mn TEUs to 11.2mn TEUs by 2010 Expected to attract additional FDI of RM5bn by 2010

C

Developments in Flagship Zone C Western Gate Development (Port of Tanjung Pelepas)

16

Zone

Completed

In Progress

Planning Stage


Bahru Stainless (M) Sdn BhdRM 5bn steel plant inTanjung Langsat

Tanjung Langsat Industrial Complex (subsidiary of Johor Corp)Light, Medium & Heavy Industries4,198.52 acres

Johor Port Multi Purpose Port facilities1000 acres of land with 600 acres of FZ

LakeHill Resort City (MPC)Integrated Resort Development - 500 acres

Tanjung Langsat Port (sub. of Johor Corp ) 3rd port - LPG, petrochemicals (750 acres)

Pasir Gudang Industrial Park (Johor Corp) - 3,764 acres

D

Developments in Flagship Zone D Eastern Gate Development (Pasir Gudang)

Zone

Completed

In Progress

Planning Stage


Senai Airport (sub. of MMC Corp Bhd)Integrated Airport City in Senai

Hi-Tech Park Senai (MMC Corp Bhd )1,000 acres

MSC Cyberport City (MSC Cyberport )130 acres

E

Developments in Flagship Zone E Senai - Skudai

18

Zone

Johor Premium OutletsGenting & Chelsea Property

Johor Technology Park & SedenakIndustrial Park(Johor Corp.)

Completed

In Progress

Planning Stage


Senai International Airport Airside Development

Senai - Skudai

Source: Senai Airport Terminal Services

Project Progress Update Flagship E

19

Runway extension 446m 100% Completed

May 2009


NAIGAI NITTO

Iskandar Malaysia Investors Profile

ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA)21

Presentation Outline

1. Iskandar Malaysia Overview

2. What can IM offers to Investors?

Excellent Logistics Choice Locations Quality Human Capital Incentives


Excellent Logistics in Iskandar Malaysia

Six to eight hours flight radius from Asia's burgeoning growth centres such as Bangalore,

Dubai, Hong Kong, Seoul, Shanghai, Taipei and

Tokyo.

Within reach of a global market of some 800 million people.

Accessible by air, land, rail and sea.

Flanked by three major ports, the Pasir GudangPort, Port of Tanjung Pelepas and Tanjung Langsat

Port


Choice of Locations

Flagship B Southern Industrial

Logistics Cluster

Flagship C Pelepas Free Zone (next

to Port of Tanjung

Pelepas)

Flagship D Pasir Gudang Industrial

Estate

Tanjung Langsat

Industrial Estate

Flagship E Senai High Tech Park

Sedenak Industrial Park


Flagship B Southern Industry Logistics Cluster (SiLC)

Choice for High Tech Industries & Logistic

Nusajaya


Flagship B Southern Industrial Logistics Cluster

Southern Industrial Logistics Cluster (SiLC)

Nusajaya

1,300 acre industrial park.

Planned to be a clean and green-managed industrial park

Excellent connectivity with proximity to Singapore and Port of Tanjung Pelepas

Provides opportunities for long term operational expandability

Land price starts from RM 26 sq ft


Choice for Logistics Hub and Manufacturing

Western Gate Development

Source: PTP

Flagship C Port of Tanjung Pelepas and the PelepasFree Zone

26


Port of Tanjung PelepasWestern Gate Development

Source: PTP 27

One of the fastest growing container port in the world (ranked 18th in the world)

Four new berths will be added to increase the ports capacity up to 11.2mil TEUs by 2010.

400 acres designated as Free Commercial Zone (FCZ) for logistic activities.

600 acres of Free Industrial Zone (FIZ) for light, medium and heavy manufacturing industries.

Land leased price starts from RM 26 sq ft



Global Players in PTP PFZWestern Gate Development

Source: PTP


28


Choice for Heavy IndustriesEastern Gate Development

Flagship D - Pasir Gudang & Tanjung Langsat

29


Choice for Heavy IndustriesEastern Gate Development

Pasir Gudang & Tanjung Langsat Flagship D

30

Suitable for heavy industries, petrochemicals and oleochemicals projects

Close to the international shipping lane and the availability of the other modes of transport.

Vast industrial land of about 4,000 acres located next to Port of Tanjung Langsat

Leasehold land price starts from RM 15 sq ft


Choice for High Tech Manufacturing, Logistic & Aerospace Industries


Senai - Skudai

Flagship E - Senai High Tech & Aviation Park -

31


SENAI AIRPORT CITY OVERVIEW

Cargo &

Logistics Park

Hi-Tech Park

Commercial

& Residential

Development Master Plan

The Senai Airport City consists of an

integrated 2,718.68 acres of free zone and

mix industries development located

adjacent to the Senai International Airport.

i. Zone 1 - 1,138 acres will be developed

into a High-Technology Industrial Park.

ii. Zone 2 - 928 acres as a free zone Cargo,

Logistics & Aviation Park.

iii. Zone 3 - 652 acres to be developed into a

Commercial and Residential Park.

Land leased price starts from RM 25 sq ft

The Senai Airport City will be developed as a

premier development with an integrated Work-

Live-Develop-Meet-Play environment.

The main components of the Senai Airport City

development are:

PHASE 3:

Senai Airport City(2,719 acres)


Choice for High Tech Manufacturing, Small, Medium & Supporting Industries


Sedenak

Flagship E Sedenak Industrial Park

33


Sedenak Industrial Park


Sedenak

Sedenak- Flagship E

34

Newest industrial area in Johor

3,000 acres dedicated for industries

Easily accessible to the North-South Highway.

Provides huge opportunity for growth and development.

Leasehold land price starts from RM 12 sq ft


Quality Human Capital

Human Capital Development in IM is being supported by IRDA Human Capital Blue Print.

Three (3) Universities in Johor with strong courses for Engineering, Aerospace etc. They are University

Technology Malaysia, University Tun Hussein Onn

(Batu Pahat), University Institute Technology Mara

and skills training institutions

Pool of engineering and technical talent from global manufacturing industries that already existed in

Johor such as Flextronics, TRW, Seagate, Kiswire,

Western Digital, etc.


Good Incentives for Manufacturing Activities

Promoted activities

(General)

High Technology

Projects

National and

Strategic Projects

Prepackaged

Incentives

Pioneer

Status

Exemption from tax for

5 years at 70% of

statutory income

Exemption from tax

for 5 years at 100% of

statutory income

Exemption from tax 5

years, may be

extendable to

another 5 years at

100% of statutory

income

Exemption from tax

up to 10 years or

more at 100% of

statutory income

Investment

Tax

Allowance

(ITA)

60% ITA on qualifying

capital expenditure

incurred within 5 years

to be set off against

70% of statutory

income

60% ITA on qualifying

capital expenditure

incurred within 5

years to be set off

against 100% of

statutory income

100% ITA on

qualifying capital

expenditure incurred

within 5 years to be

set off against 100%

of statutory income

100% ITA on

qualifying capital

expenditure incurred

within a period up to

10 years to be set off

against 100% of

statutory income


In Summary

37

3 world-class ports,1 international airport and 2 additional ports + an international airport in Singapore

Connectivityhighways, train, broadband, availability support services Availability of quality skills/manpower Upgraded physical and social infrastructure

Consistent and transparent Government policies Creation of IRDA to facilitate businesses & investments Ease of sourcing capital, goods and resources

Centrally located in the heart of East Asia Leveraging on the close proximity to Singapore with Global connectivity Sustainable economic growth within ASEAN region

Attractive investor value propositions High upside potential for investments

Overall Competitiveness Total cost of doing business

ISKANDAR REGIONAL DEVELOPMENT AUTHORITY (IRDA) 38

Iskandar Malaysia offering the right balance of the right ingredients for everyone to invest,

work, live and play

Thank You

Contact:

Mohammed AshrilVice President

Investor [email protected]

Documents

Iskandar Malaysia